[edgeywood]

There is a referendum on the November ballot that seeks to make the current tax law part of the Indiana Constitution.

Seems simple, but the more you look at it, the more complex it gets.

Here's a pro and con developed by the Indiana League of Women Voters.
http://www.lwvin.org/voterinfo/Tax_Caps.html


What do you think?

[NDReporter]

There is a referendum on the November ballot that seeks to make the current tax law part of the Indiana Constitution.

Seems simple, but the more you look at it, the more complex it gets.

Here's a pro and con developed by the Indiana League of Women Voters.
http://www.lwvin.org/voterinfo/Tax_Caps.html
What do you think?

It's very interesting, to say the least. The N-D is planning to run an article on this closer to the election so it's fresh in people's minds.

[Southsider2k12]

This discussion group was great to attend. There was a ton of information in that powerpoint, and a lot of quality intellect that was shared in that room. My opinion is that even if you are in favor of property tax caps, which I am not, there is zero need for a constitutional amendment for it. We have a law.

And folks don't think for one second that if this were to win, that your local governments wouldn't find other sources of revenue to take from you. They can pretty much tax anything they want with the right approvals. All this property tax cap law has done is substitute sales taxes, from property taxes, and shift the burden from people who have money in real estate, to people who have to spend all of their incomes to survive. Remember sales tax is a regressive tax because of the relative levels of spending involved with each relative level of income in this country. This bill is literally taxing the poor to subsidize rich people's houses. I am very conservative when it comes to taxation, but this rule makes no sense in the grand scheme of things.

[Southsider2k12]

http://www.indystar.com/article/20101026/O...set-in-concrete

On Nov. 2, Hoosiers will vote on a proposed property tax caps amendment to the state constitution. Included in the language are limits to annual property tax bills at fixed percentages of gross assessed value according to various classifications of property.

For example, bills would be limited to 1 percent of primary residential or homestead property, 2 percent of rental or agricultural property, and 3 percent of business property.

It may make sense to pass property tax caps, as the General Assembly did in 2008, to provide relief to taxpayers, especially during hard times, and to help spur short-term economic growth. However, enshrining the property tax caps in the constitution would be a mistake. Property taxes are the lifeblood of public schools and libraries. We have seen how harmful a bad economy, property tax caps, and budget cuts ordered by Gov. Mitch Daniels can be to schools.

The property tax mess in LaPorte County has left Michigan City area schools in the hole an additional $8.2 million. School districts have had to lay off many teachers and support staff and reduce or eliminate programs. These cuts come especially hard for students with low incomes, those with special needs, those whose native language is not English and those who need other forms of remedial help.

In addition, many students could miss out entirely on the enriching experiences that art, music and physical education classes provide. Many public libraries similarly reduced their staff, programs and hours of operation. The fact that libraries receive a majority of their operating funds through property taxes is one of many reasons that the Indiana Library Federation opposes the property tax caps amendment.

Once in the constitution, property tax caps would be extremely difficult to repeal or change. It takes approximately five years to amend the constitution. Schools, libraries and other essential services dependent on property taxes could face chronic budget shortfalls even as the economy gains momentum. Furthermore, some legislators fear it is unwise to pass this amendment because we have not realized the full impact of the current property tax caps law.

If we fail to place a premium on education, how can we expect our state to attract and retain employers that provide high-paying jobs? Lawmakers need the flexibility to ensure that our schools and libraries are adequately funded in a timely manner. Please vote no on the property tax caps amendment. We owe it to our children.

Phillip J. Budrick

Michigan City

[Southsider2k12]

Interesting to see someone offer an end-around on the tax caps.

http://www.nwitimes.com/news/local/govt-an...644add399d.html

Skillman suggests route around tax caps for local governments

By Dan Carden dan.carden@nwi.com, (317) 637-9078 | Posted: Tuesday, January 3, 2012 7:30 pm | (8) Comments

Becky Skillman is Indiana's lieutenant governor.

INDIANAPOLIS | Counties, cities and towns could seek permission to bust the state's property tax caps under a local government reform plan proposed Tuesday by Lt. Gov. Becky Skillman.

The Republican said she wants local government to have the same authority as schools to ask taxpayers for more money in a referendum.

"It is not easy to get the voters to say 'yes' to additional spending, but occasionally schools have made a great case for the dollars and the referendum has passed," Skillman said. "I believe we should allow local units to have a referendum process for additional revenue."

Hoosiers amended the Indiana Constitution in 2010 to cap property tax rates at 1 percent of assessed value for owner-occupied homes, 2 percent for farms and rental properties and 3 percent for business and industrial properties.

However, that amendment also allows property taxes to exceed those rates if voters approve higher rates through a referendum.

Matt Greller, CEO of the Indiana Association of Cities and Towns, which supports Skillman's proposal, said lawmakers need to create a referendum process to "remove the handcuffs" from local government spending.

"We have to be able to provide services to our constituents in order to create places where people want to live, work and play," Greller said.

Skillman said the referendum idea was presented to her by local government officials during her summer and autumn Hoosier Crossroads Tour of 27 counties, including LaPorte County.

Legislation to permit local tax hike referendums is expected to be introduced Wednesday when the Indiana General Assembly convenes.

Read more: http://www.nwitimes.com/news/local/govt-an...l#ixzz1iVWU2jX2